Remuneration and Working Circumstances in the Travel and Food Industries Research Paper

Remuneration and Working Circumstances in the Tourism and Food Industries


Tourism and hospitality organisations need various things to enable them to function, the most important of these issues being their employees. Even so to ensure that they can keep and retain all their employees there are many things that the organisation has to employ; this consists of the concepts of remuneration and working conditions. It is for this reason that this essay will examine the idea of remuneration and the different forms it can take. Leading on from this it will analyze the different factors that can effect the remuneration that one obtains in the employee-employer relationship; and why remuneration is so essential. Upon creating this, this kind of essay will certainly turn their focus on working circumstances and what can influence it, in addition to this it will set up why great working conditions are so crucial in the travel and leisure and hospitality industry. The other half of this kind of essay can look at some of such concepts regarding the aircarrier industry. It can examine the factors which usually influence remuneration in this sector along with the diverse forms of remuneration that is present within flight companies. Furthermore this essay will look at the doing work conditions inside the airline market; by doing so it is going to emphasise how come there is these kinds of a need for good working circumstances within the hospitality and tourism industries.


The concept of remuneration refers to " all kinds of financial returns and concrete services and benefits personnel receive within an employment relationship” Milkovich and Newman (2005). In other words remuneration is the monetary rewards that one gets as part of an employment agreement, together with the tangible products employees may be offered. Searching at this classification one can notice that the concept of remuneration is extremely important to a company and its employees, it is because many factors. Firstly, very good remuneration packages make this easier for an enterprise to retain personnel; not only can it help retain them but remuneration also can help to appeal to the best staff as well. Milkovich and Newman (2005) as well suggest that remuneration can motivate employees, in the event they experience valued they could be more disregard and completely happy within their jobs, thus encouraging them to execute better. Remuneration is also considered to be important by simply Milkovich and Newman (2005) for employees as it is seen as staying fair, they will receive something for the job that they give their company. Furthermore, remuneration such as additional bonuses or efficiency pay reveals recognition of these employee; quite often this reputation of a work well done is an important aspect to get workers, as a result the importance of remuneration to the organisation as well.

Types of Remuneration/Rewards

Remuneration and rewards can take a number of forms, this can be examined through three distinct categories, direct, indirect and intrinsic. Direct rewards as stated by Milkovich and Newman (2005) are made up directly of cash payments; these are the monetary returns with the most apparent example being the wage or income (base pay) one gets in return for all their work. Much of the literature obtainable within the hospitality and tourism sectors shows that this foundation pay in the industry (particularly in hospitality jobs such as house keeping) is extremely low, with Williams, Adam-Smith and Norris (2004) stating the fact that hospitality sector has the trustworthiness of being a low paying sector. The direct rewards may also include the incentive of bonuses, commission and gratification pay; because Harrison (1993) suggest there have been some growth in bonuses being used as a reward lately. Direct advantages can furthermore also come in the proper execution of company shares and stock possession; although these are generally not strictly cash benefits they stand for a cash value (Milkovich and Newman, 2005). Roundabout rewards alternatively refer to those rewards which will...

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